Indiabulls IPO On September 6

Mumbai, Aug 26 | Updated: Aug 27 2004, 05:30am hrs
Indiabulls Financial Services Ltd (Indiabulls) is hitting the primary market with a public issue of 2,71,87,519 equity shares at a price band of Rs 16-19, aggregating between Rs 43.5 crore and Rs 52 crore. SBI Capital Markets and DSP Merrill Lynch are the book running lead managers to the IPO.

The issue opens on September 6, 2004 and closes on September 10, 2004. The IPO is being made through 100 per cent book building route. The issue of 2,71,87,519 equity shares of a face value of Rs 2 per share constitutes 25 per cent of the fully diluted post issue paid-up caiptal of the company.

The 50 per cent of the issue shall be allocated on a discretionary basis to qualified institutional buyers (QIBs) and 25 per cent on a proportionate basis to non-institutional bidders. While the remaining 25 per cent shall be available to retail bidders.

The object of the issue is to achieve listing benefits and to raise capital from the market to start new business activities, upgrade existing fixed infrastructure, open offices, make investments and go for strategic acquisitions.

Sameer Gehlaut, CEO & Founder, Indiabulls, said: We are going to open another 30 offices. Currently, the company has a network of 70 offices spread across 55 cities. Presently, Indiabulls offers wide range of financial products and services that focuses on Indian retail markets by providing servcies in the equity, debt and derivaties broking, depository services and distribution of insurance and mutual funds. Equity brokerage constitutes major part of the companys revenue.

Divyesh Shah, president sales, Indiabulls, said: We plan to open offices in Dubai as well as venture into commodity trading and IPO financing.

Stratergic Investors such as LNM India Internet Ventures Limited, Transatlantic Corporation Ltd, Farallon Capital Partners LP and Infinity Technologies Trustee Private Limited have invested over Rs 70 crore in the company. They cumulatively hold 37.75 per cent stake in the company, which will come down to 29.32 per cent post IPO. While Sameer Gehlauts stake in the company after the issue will come down to 23.04 per cent from 30.72 per cent.